Released November 27, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union's (EU's) lending arm, the European Investment Bank (EIB), is to stop investing in fossil fuel energy projects from the end of 2021.
Following approval of the revised energy lending policy, the EIB confirmed that it will "no longer consider new financing for unabated, fossil fuel energy projects, including gas, from the end of 2021 onwards." Since 2013, the EIB has supplied 13.4 billion euro ($14.9 billion) in funding for fossil fuel projects with 2 billion euro ($2.2 billion) in investment alone last year. Pulling its future funding will have serious impacts on many planned coal and gas-fired projects but those already listed by the EU on its "Projects of Common Interest" (PCI) list will still be in with a shot of financial support before 2022. The PCI list contains projects for implementing cross-border energy infrastructure in the EU. Electricity and smart grids make up more than 70% of the projects, with renewable energy dominating those. In the most recent list, 32 gas projects are listed (21% of the total) but down from 53 projects listed two years ago. Gas is seen a key bridging technology for Europe as it rapidly rolls out renewable energy and ditches oil and coal-fired power, as well as nuclear power in a growing number of EU countries.
"Climate is the top issue on the political agenda of our time," said EIB President Werner Hoyer. "Scientists estimate that we are currently heading for 3-4°C of temperature increase by the end of the century. If that happens, large portions of our planet will become uninhabitable, with disastrous consequences for people around the world. The EU bank has been Europe's climate bank for many years. Today it has decided to make a quantum leap in its ambition. We will stop financing fossil fuels, and we will launch the most ambitious climate investment strategy of any public financial institution anywhere."
The EIB's announcement comes just weeks after the incoming European Commission (EC) president, Ursula von der Leyen, promised to turn the EIB into a "climate bank." The EIB claimed that it will now carry out 1 trillion euro ($1.1 trillion) "of climate action and environmental sustainable investment in the decade to 2030." Under the new policy, the EIB is introducing a new Emissions Performance Standard of 250 grams (g) of CO2 per kilowatt/hour (kWh), replacing the current 550g CO2/kWh standard. This will effectively rule out EU funding for new gas-fired power plants.
EIB Vice-President Emma Navarro, in charge of climate action and environment, said: "To meet the Paris climate goals we urgently need to raise our level of ambition, and this is precisely what we have done today. Two weeks before the United Nations climate change conference in Madrid, these decisions send an important signal to the world: The European Union and its bank, the EIB, commit to mobilise investments on an unprecedented scale to support climate action projects around the world. In addition, we commit to align all EIB Group activities with the principles and goals of the Paris agreement by the end of 2020. Any financing that is not green will be made sustainable, according to the requirements of the Paris deal."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Following approval of the revised energy lending policy, the EIB confirmed that it will "no longer consider new financing for unabated, fossil fuel energy projects, including gas, from the end of 2021 onwards." Since 2013, the EIB has supplied 13.4 billion euro ($14.9 billion) in funding for fossil fuel projects with 2 billion euro ($2.2 billion) in investment alone last year. Pulling its future funding will have serious impacts on many planned coal and gas-fired projects but those already listed by the EU on its "Projects of Common Interest" (PCI) list will still be in with a shot of financial support before 2022. The PCI list contains projects for implementing cross-border energy infrastructure in the EU. Electricity and smart grids make up more than 70% of the projects, with renewable energy dominating those. In the most recent list, 32 gas projects are listed (21% of the total) but down from 53 projects listed two years ago. Gas is seen a key bridging technology for Europe as it rapidly rolls out renewable energy and ditches oil and coal-fired power, as well as nuclear power in a growing number of EU countries.
"Climate is the top issue on the political agenda of our time," said EIB President Werner Hoyer. "Scientists estimate that we are currently heading for 3-4°C of temperature increase by the end of the century. If that happens, large portions of our planet will become uninhabitable, with disastrous consequences for people around the world. The EU bank has been Europe's climate bank for many years. Today it has decided to make a quantum leap in its ambition. We will stop financing fossil fuels, and we will launch the most ambitious climate investment strategy of any public financial institution anywhere."
The EIB's announcement comes just weeks after the incoming European Commission (EC) president, Ursula von der Leyen, promised to turn the EIB into a "climate bank." The EIB claimed that it will now carry out 1 trillion euro ($1.1 trillion) "of climate action and environmental sustainable investment in the decade to 2030." Under the new policy, the EIB is introducing a new Emissions Performance Standard of 250 grams (g) of CO2 per kilowatt/hour (kWh), replacing the current 550g CO2/kWh standard. This will effectively rule out EU funding for new gas-fired power plants.
EIB Vice-President Emma Navarro, in charge of climate action and environment, said: "To meet the Paris climate goals we urgently need to raise our level of ambition, and this is precisely what we have done today. Two weeks before the United Nations climate change conference in Madrid, these decisions send an important signal to the world: The European Union and its bank, the EIB, commit to mobilise investments on an unprecedented scale to support climate action projects around the world. In addition, we commit to align all EIB Group activities with the principles and goals of the Paris agreement by the end of 2020. Any financing that is not green will be made sustainable, according to the requirements of the Paris deal."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
